DGX FCF Yield Analysis

A 5.2% FCF yield means Quest Diagnostics generates free cash flow equal to 5.2% of its current market value each year, a measure of how much cash the business produces relative to its stock price.

That level sits above the healthcare sector median of 3.4%, placing Quest in the 88th percentile among peers — meaning most comparable companies offer a lower yield. The trend is decreasing over the last eight quarters, with the value falling from 5.7% to 5.3% to 5.2% in the most recent readings; quarter-over-quarter it dropped 1.9%, and year-over-year data is not available. A high but declining yield suggests the market’s cash return is still attractive, yet the downward trend points to either rising share price or softening free cash flow, which warrants caution. For an investor, the current level supports income-oriented appeal, but the erosion reduces the margin of safety compared to earlier periods. This metric partially supports the NEUTRAL verdict: the high percentile is a positive, while the decreasing trend tempers enthusiasm, leaving no strong push toward buy or sell.

Frequently Asked Questions

Closest Sector Peers